Today's Tip of the Day is one after my own heart. When Disaster Struck the first thing we did was switch to a cash budget using the envelope system. In those day's I'd go to the bank every second Thursday and withdraw the cash we needed for the next two weeks. I'd have to go into the bank because I wanted the right change for each envelope. The night before banking day I'd sit down with the budget and work out exactly how much I needed to withdraw and the currency needed.
Then, when I finally made it home, I'd sit down at the kitchen table with a cuppa and sort the money into the envelopes. Those envelopes lived in a drawer in our bedroom. When I needed grocery money I'd take what it from the grocery envelope, petrol came from the petrol envelope and so on.
It may be old fashioned but it works and it is a great way to control your money and your spending.
Freeing Up CashWhen I started out seriously budgeting, we had 2 school aged children, credit card bills, mortgage, car payments as well as everyday living. We both work full time and weren't getting anywhere fast or had any spare cash so I set up an envelope system for my bills I split it all up into fortnightly amount (that's when we get paid) and started putting the money away. For the first twelve months it was hard but if you persevere it will get easier. I now can make double payments on the house, have cleared the car payment, credit card bills, have just sent my husband to Germany for a holiday with his family and have spare money in the bank. I have never felt more in control of our money than I do now. Our children don't miss out on anything and now our son works he realises the value of money and saves his up. He has already purchased a car for when he gets his license.
Contributed by Presley Dostal